Moscow. December 8. After the rejection of the Russian proposal for restructuring sovereign debt default occurs for the situation of Ukraine, said presidential press Secretary Dmitry Peskov.
In the course of communication with journalists on Tuesday of the Sands, at their request, commented on the expiration “deadline” for the answer Kiev to Moscow’s proposal to restructure the Ukrainian debt.
“On – default situation, what we talked about,” said Sands.
He recalled that Russia proposed its version of restructuring of the Ukrainian debt. “Putin spoke in Antalya this initiative, unfortunately, our opponent did not agree, any other proposals from the Russian Federation no. Accordingly, all the norms of the international and financial relations, because it is sovereign debt, there is a default, ” said press Secretary of the Russian President.
In December, Ukraine must repay Eurobonds for $3 billion in 2013 in favor of Russia. Kiev proposed Moscow restructuring of this issue in General terms with the holders of commercial obligations, the Russian Federation refused to discuss this option, insisting on a sovereign, rather than commercial, nature of the debt. In November, Russia offered the option: the installment payments for three years ($1 billion in 2016-2018) subject to guarantees from the USA, EU or international financial institution. On Saturday, the Finance Ministry reported that the US government officially denied the guarantees for the obligations of Ukraine.
Earlier, the Finance Ministry also said that Russia will submit to the Ukraine to court if the borrower does not fulfill its obligations on Eurobonds issued on 20 December.
“Despite the absence of an official request of Ukraine to the government of the Russian Federation on the issue of restructuring sovereign debt by 3 billion dollars, Russia has made a proposal to the installment of repayment of the Ukrainian debt for 3 years (2016-2018 years) under guarantees of the USA, EU or first class international financial institution”, – said in a statement.
“We have offered terms even better than was requested by the international monetary Fund. This week we received an official refusal from the U.S. government to provide guarantees for the obligations of Ukraine. In this regard, we have no choice but to sue Ukraine in the event of default by the borrower of the obligations in full on 20 December of the current year, which would mean a sovereign default of Ukraine”, – stressed in the Ministry of Finance.
Changing politics of IMF lending
Also earlier it was reported that on 8 December the IMF Executive Board will consider the issue of changing the organization’s policy against countries in arrears to official creditors.
Politics of IMF lending (Lending-into-Arrears Policy) currently excludes the possibility to provide funding member country of the Fund in arrears to the lender. Removing this restriction will allow the Fund to continue lending to Ukraine under the current program of the expanded financing, even if Kiev will be in default before Russia released in 2014 Eurobonds worth $3 billion.
The issue of the reform of the policy Lending-into-Arrears Policy is included in the agenda of Council meetings, posted on the IMF website.
Revision of credit policies is likely to occur in two phases, said before the official representative of the IMF Jerry rice. First will be an informal meeting of the Board of Directors (it is, according to the Agency Bloomberg, passed November 23), then formal.
The IMF to date have not determined the status of Eurobond issue, which was released by Ukraine in favor of Russia (commercial or official).
The Russian foreign Minister Sergey Lavrov said the day before, a reform that is attempting to implement the IMF organized exclusively for Ukraine and “can lay a time bomb under all other programs of the IMF”. According to him, the U.S. refused to provide a guarantee in the framework of the Russian-proposed debt restructuring of Ukraine, in fact, recognized the lack of prospects of restoration of its solvency.
